Hey guys,
Today I will talk about one of my favourite trading tools called the Bollinger Bands.
It is very relevant and easy to understand.
From Cointelegraph
Definition from Investopedia :
Using The Bollinger Bands, created by the famous technical trader John Bollinger, is plotted two standards deviations away from a simple moving average.
The Bands can be used to measure the "highness" or the "lowness" of the price relative to the previous trade.
In simple world, it will help you understand the volatility of the coin and so, will help you to take decision on when to sell and when to buy.
The Golden rule of all traders is : buy low sell high.
Well let's have a look to this example.
I'm using the Bollinger Bands on Bittrex and I took the Ark coin as example.
Procedure :
- Go to Bittrex, log in, and go to one of the coin you want to trade (here will be Ark).
- On the chart, make sure you are at 30 min Timeline
- Click on "Studies", then "Bollinger Bands"
- Set it up as it is, just click "Create"
- When you have your Bollinger bands, start to have a look to the up and down
What you want to see and what you are interesting in are all the candles "out" of the bands (either low or high). It is where you will see a correction and the price will either drop or pump.
Here with the cursor, it is where the price went very high and went out of the bands. Followed then by the correction and the drop's price.
This is your sell point : IT IS WHEN YOU WANT TO SELL !
- As opposite, here with the cursor, it is where the price went down too much, out of the bands, and follow a correction too but in the other way.
This is your buy entry : IT IS WHEN YOU WANT TO BUY
It is very simple to understand the volatility with this tool and understand when or not acting.
- Also when using the Bollinger Bands, have a look to the period where the coin didn't move much. Means when all the candles stay in the bands : soon, something will happen. Could be a drop or it could be a pump. Depends on what's going on the market, news etc as you all know.
Here the example with Ark :
The "flat" period shows you that something will happen. And this period was followed by a consequent drop. It could have been the opposite. But anyway, the drop means obviously an entry point for you.
If you couple this technique with the Golden Cross technique, you will be the king of the petrol pretty soon haha.
Have a look to the Golden Cross tool here :
I'm just sharing my experience, do you own research guys and feel free to drop comments if you need any help :).
Let me know too what is your favourite tool for trading.
Joris
Bollinger Bands are really useful and easy to understand. Everyone has their own methods and strategies for Technical analysis. For example I never take a trade without seeing at least 3-5 independent indicators. Like B-bands, a momentum indicator (like RSI stochastic or MACD), Volume and moving averages. If they confirm a trade then I usually take. Cheers Joris. Happy trading!
Thank you for your sharing =) Happy trading too !
img credz: pixabay.com
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$4462.18 USD/BTCVolume: 34185.33 BTC ($152541115.4 USD)Last Updated Sun Oct 8 10:26:52 2017Great post and very informative. @jlcrypto Have learnt a lot from it.
Great to here it ! :)
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STOPAwesome i need some bitrrex help fo sho.
Great thanks !
Am more of an investor than a trader..will follow you and perhaps will you about it in the future. Enjoy your travels!
I just did. Thank you for you comment and will keep in touch =). Don't hesitate if you need anything
Definitely I will thanks..right now it's confusing. Perhaps when i'll learn and start trading in the future.
gracias amigo por tu aporte
Prego signor
I like using Bollinger Bands
They are really cool yeah ! What else are you using?
MACD and Moving Flow
Nice one. Are you using golden cross with moving averages (13/34) ?
Yes i am it's great
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